County leaders tackle taxes, raises, funding

Published: Wednesday, January 16, 2013 at 10:06 p.m.

Last Modified: Wednesday, January 16, 2013 at 10:06 p.m.

Lowering property taxes, increasing funds for emergency services and providing a 2.5 percent raise for county employees were all thrown on the table by county commissioners Wednesday during a 2013-14 budget planning retreat.

With less than six months until they adopt a new county budget, commissioners heard they'll need roughly $110 million next fiscal year just to cover current obligations, with projected revenues falling about $4 million short of that.

Commissioners will have about $10.1 million in reserves available to make up the difference, said County Manager Steve Wyatt, if they stick with their policy of keeping 12 percent of the budget in a "rainy day" fund.

Wyatt called a proposal by Commissioner Grady Hawkins to cut the property tax from 51.36 cents per $100 valuation to 50 cents "doable," though it would reduce tax revenues for next fiscal year by $1.58 million. He said the county currently has the fourth-lowest tax rate of the 27 counties in North Carolina with more than 100,000 residents.

Hawkins said the tax cut would be worth it, freeing up capital for businesses to invest in new workers or equipment, which in turn could "actually bring back a bit more of a benefit to the county" in the form of increased sales or property tax revenues. It would also help ease the burden on residents, he said.

"I can tell you there's a lot of people in this county that are struggling to pay their taxes, there's a lot of people out of work, a lot of houses in foreclosure, and I think this would be a really great thing that we could do for the county," Hawkins said. "And I hope as we progress, if nothing else, (we) look at that as a target and see if we can't make that work."

Chairman Charlie Messer said he didn't have a problem with looking at lowering the tax rate, but he pointed out "there are a lot of unknowns out there." The board discussed several of those uncertainties, including the impacts of Obamacare, regional utility mergers and capital needs that include courthouse renovations, park facilities, a new E-911 center and replacement transit buses.

During a discussion of budget priorities for the coming year, several commissioners cited emergency services upgrades as a top priority. EMS Manager Mike Barnett told the board his department needs between $400,000 and $595,000 to pay for a new ambulance, equipment and four to eight more paramedics.

Barnett said EMS's call volume has increased 20 percent since 2009, growing roughly 650 calls per year. He said EMS needs an additional 12-hour ambulance crew at its main station next to Pardee Hospital to cover the peak hours of 9 a.m. to 9 p.m., which could transition to a 24-hour crew if needed in the future. The last EMS unit added was six years ago, he said.

When it comes to EMS, "I don't think we need to be penny wise and pound foolish," said Commissioner Mike Edney, who also voiced his support for more rescue squad funding. "We need to do what we need to do to provide the service; if we need two more stations, three more stations, five more ambulances, whatever it takes to get the job done."

Several commissioners expressed concern that Henderson County is losing good workers to neighboring counties because its salaries aren't competitive. Edney requested that the county budget for a salary assessment to examine the issue, citing complaints from the sheriff's office and social services managers that they are training workers only to lose them to other, better-paying localities.

Vice Chairman Tommy Thompson agreed competitiveness was a problem, saying, "I'd like to see something in the neighborhood of a 2.5 percent increase in salaries of county employees and the opportunity for bonuses if they go above and beyond their requirements."

He asked if the salary study could be completed by June, when the 2013-14 budget will be finalized.

The board voted 5-0 to add $40,000 in parking lot improvements to a $300,000 project to renovate Jackson Park, which went out to bid Jan. 3 and is scheduled to be completed by March 1. Work includes new batting cages, wireless scoreboards, remodeled restrooms and other changes necessary to get the fields capable of hosting baseball and softball tournaments.

While supportive of the changes, Thompson was among several commissioners who worried that budgeted improvements to Jackson Park and a new athletics and activity center at the former Hendersonville Christian School could send the wrong message to citizens working on parks in outlying areas.

"I want to make sure during the budget process that we don't forget Tuxedo/Zirconia Park and, likewise, Dana Park," he said. "I think now is the time to get dollar figures on those, as far as budgetary items are concerned, as opposed to just somewhere out there in the wind wondering what we're going to do about them."

Hawkins suggested commissioners should look at phasing in some of the pricier improvements at the former Christian school site "so as to allow some of these other things to occur," and to allow time for the county to possibly win a $500,000 grant from the N.C. Parks and Recreation Trust Fund.

<p>Lowering property taxes, increasing funds for emergency services and providing a 2.5 percent raise for county employees were all thrown on the table by county commissioners Wednesday during a 2013-14 budget planning retreat.</p><p>With less than six months until they adopt a new county budget, commissioners heard they'll need roughly $110 million next fiscal year just to cover current obligations, with projected revenues falling about $4 million short of that. </p><p>Commissioners will have about $10.1 million in reserves available to make up the difference, said County Manager Steve Wyatt, if they stick with their policy of keeping 12 percent of the budget in a "rainy day" fund.</p><p>Wyatt called a proposal by Commissioner Grady Hawkins to cut the property tax from 51.36 cents per $100 valuation to 50 cents "doable," though it would reduce tax revenues for next fiscal year by $1.58 million. He said the county currently has the fourth-lowest tax rate of the 27 counties in North Carolina with more than 100,000 residents.</p><p>Hawkins said the tax cut would be worth it, freeing up capital for businesses to invest in new workers or equipment, which in turn could "actually bring back a bit more of a benefit to the county" in the form of increased sales or property tax revenues. It would also help ease the burden on residents, he said.</p><p>"I can tell you there's a lot of people in this county that are struggling to pay their taxes, there's a lot of people out of work, a lot of houses in foreclosure, and I think this would be a really great thing that we could do for the county," Hawkins said. "And I hope as we progress, if nothing else, (we) look at that as a target and see if we can't make that work."</p><p>Chairman Charlie Messer said he didn't have a problem with looking at lowering the tax rate, but he pointed out "there are a lot of unknowns out there." The board discussed several of those uncertainties, including the impacts of Obamacare, regional utility mergers and capital needs that include courthouse renovations, park facilities, a new E-911 center and replacement transit buses.</p><p>During a discussion of budget priorities for the coming year, several commissioners cited emergency services upgrades as a top priority. EMS Manager Mike Barnett told the board his department needs between $400,000 and $595,000 to pay for a new ambulance, equipment and four to eight more paramedics.</p><p>Barnett said EMS's call volume has increased 20 percent since 2009, growing roughly 650 calls per year. He said EMS needs an additional 12-hour ambulance crew at its main station next to Pardee Hospital to cover the peak hours of 9 a.m. to 9 p.m., which could transition to a 24-hour crew if needed in the future. The last EMS unit added was six years ago, he said.</p><p>When it comes to EMS, "I don't think we need to be penny wise and pound foolish," said Commissioner Mike Edney, who also voiced his support for more rescue squad funding. "We need to do what we need to do to provide the service; if we need two more stations, three more stations, five more ambulances, whatever it takes to get the job done."</p><p>Several commissioners expressed concern that Henderson County is losing good workers to neighboring counties because its salaries aren't competitive. Edney requested that the county budget for a salary assessment to examine the issue, citing complaints from the sheriff's office and social services managers that they are training workers only to lose them to other, better-paying localities.</p><p>Vice Chairman Tommy Thompson agreed competitiveness was a problem, saying, "I'd like to see something in the neighborhood of a 2.5 percent increase in salaries of county employees and the opportunity for bonuses if they go above and beyond their requirements." </p><p>He asked if the salary study could be completed by June, when the 2013-14 budget will be finalized.</p><p>The board voted 5-0 to add $40,000 in parking lot improvements to a $300,000 project to renovate Jackson Park, which went out to bid Jan. 3 and is scheduled to be completed by March 1. Work includes new batting cages, wireless scoreboards, remodeled restrooms and other changes necessary to get the fields capable of hosting baseball and softball tournaments.</p><p>While supportive of the changes, Thompson was among several commissioners who worried that budgeted improvements to Jackson Park and a new athletics and activity center at the former Hendersonville Christian School could send the wrong message to citizens working on parks in outlying areas.</p><p>"I want to make sure during the budget process that we don't forget Tuxedo/Zirconia Park and, likewise, Dana Park," he said. "I think now is the time to get dollar figures on those, as far as budgetary items are concerned, as opposed to just somewhere out there in the wind wondering what we're going to do about them."</p><p>Hawkins suggested commissioners should look at phasing in some of the pricier improvements at the former Christian school site "so as to allow some of these other things to occur," and to allow time for the county to possibly win a $500,000 grant from the N.C. Parks and Recreation Trust Fund.</p><p>Reach Axtell at 828-694-7860 or than.axtell@blueridgenow.com.</p>